According to a report (h/t:CRN) from data analytics firm Mercury Research, Advanced Micro Devices Inc (NASDAQ: AMD) captured the largest market share since 2006 against Intel Corporation (NASDAQ: INTC) in the high-dollar data center segment with EPYC processors in Q121.
For the quarter, AMD recorded a market-share gain of 1.8 points to 8.9 percent in server CPUs, a sign that the chipmaker’s momentum of strong EPYC sales against x86 rival Intel isn’t letting up.
AMD said third-gen EPYC server CPU sales more than doubled in Q1 from the same period last year, prompting the company’s server market share to increase by 3.8 points year-over-year (y/y), the report said — citing data from Mercury Research.
Dean McCarron, a principal analyst at data analytics firm, said AMD sold fewer low-end CPUs and more high-end CPUs in Q1, a factor that contributed to an increase in average selling prices for its chips. It should be noted that AMD’s high-end processors are typically more affordable than the competition while delivering an excellent performance.
“This explains how AMD reported in its earnings that it had record server and client revenues, even though units were down in client and server units are far from the company’s record shipments of 15 years ago,” said McCarron.
AMD designs microprocessors and similar computer components for the computer and consumer electronics industries. The majority of the firm’s sales are in the data center, business computing solutions and graphics market via CPUs and GPUs.
The last time AMD saw such a large single-quarter gain in server CPU shipments was in 2006, back when Opteron was still competitive and giving Intel a tough time in the server segment. AMD saw at the time its server market share spike from around 5%-7% to about 22% in only 18 months, according to Mercury Research. Intel however regained market share over the following 10 years before AMD started its comeback in 2014, thanks to the appointment of CEO Lisa Su and her vision of the company in relation to the consumer electronics industry.
AMD reported a strong earnings report last month, delivering 40% y/y revenue growth driven by higher computing and graphics segment revenue. Net income came in at $222 million, with diluted eps of $0.18, on revenue of $1.79 billion.
The Street was looking for eps of $0.18 on revenue of $1.78 billion.
Looking ahead, AMD said it expects its revenue for FY 2021 to grow by 50% y/y.
AMD shares gained $0.92, or 1.18%, by the close of trading Friday and changed hands at $78.81 each. Ticker is down 0.39% in the before-hours session.